External broker reports(aggregated public sources), CMB International

CMB International

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

External broker reports(aggregated public sources)

Equity Bottom-Up

Inner Mongolia Yili Industrial Group (A) / Equity Bottom-Up

Inner Mongolia Yili Industrial Group (A) (600887 CH)

<ul><li>Yili’s 3Q revenue/net profit stood at RMB31.2/3.1bn, up +2.7%/59.5%, and both came in in line with our estimates.</li><li>The former was largely driven by a sequential acceleration in liquid milk sales to +8.5% YoY (from -2.6%/+0.5% in 1Q/2Q) that offset a rather disappointing momentum in low-temp/IMF sales (-35.7%/-3.9% YoY).</li><li>Meanwhile, the latter grew off a low comps with a 1.6pp expansion in GPM, along with a notable 1.6pp decline in opex ratio which we previously asserted it to be a major earnings growth driver. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Yili’s 3Q revenue/net profit stood at RMB31.2/3.1bn, up +2.7%/59.5%, and both came in in line with our estimates.The former was largely driven by a sequential acceleration in liquid milk sales to +8.5% YoY (from -2.6%/+0.5% in 1Q/2Q) that offset a rather disappointing momentum in low-temp/IMF sales (-35.7%/-3.9% YoY).Meanwhile, the latter grew off a low comps with a 1.6pp expansion in GPM, along with a notable 1.6pp decline in opex ratio which we previously asserted it to be a major earnings growth driver. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yili Industrial (600887 CH) – 3Q Rev/Np +3%/59%; Cost Cut Was Key to Profit Growth